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Market update: S&P 500 and NASDAQ 100 forecast for the week ahead

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S&P 500 and NASDAQ 100 remain broadly biased higher; but near-term trends are also bearish, offering a neutral view and what are the key levels to watch for in the week ahead.


original-size.webpSource: Bloomberg


Daniel Dubrovsky | Currency Analyst, DailyFX, San Francisco | Publication date: Monday 16 October 2023 04:58

S&P 500 technical analysis

The S&P 500 completed a second weekly gain, finishing almost 0.4% higher over the past five trading days. That said, the index relinquished some gains heading into the end of the week, making for overall cautious upside performance.

Still, the broader technical outlook remains broadly biased to the upside. Let us take a closer look at why.

All you have to do is look at the rising range of support from October 2022 to see why. This zone has been maintaining the dominant upside focus. Another key support zone is the 4235 – 4277 range established in September.

That said, there is an argument for a near-term bearish bias considering losses since July. Key resistance is 4430.5. Clearing higher exposes the September peak of 4566.

Otherwise, clearing support offers an increasingly bearish bias towards the April low of 4062.25.

S&P 500 daily chart


original-size.webpSource: TradingView

NASDAQ 100 technical analysis

The NASDAQ 100 faces a similar situation as the S&P 500. Losses later in the week meant that the tech-heavy index finished little changed. That said, the broader bullish bias is being upheld by a rising range of support from the beginning of this year.

Coupled with the 14589 – 14853 support zone, the NASDAQ may find it difficult to breach meaningfully lower.

At the same time, losses since July have been offering a short-term bearish technical bias. A falling trendline from then (blue line below) is also holding as resistance, maintaining the downside focus.

Clearing lower exposes the June low of 14251 before the 13740 inflection zone kicks in. On the other hand, reversing higher may open the door to revisiting the July peak.

NASDAQ 100 daily chart


original-size.webpSource: TradingView




This information has been prepared by IG, a trading name of IG Australia Pty Ltd. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.

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